S&P affirms National Bedding

Standard & Poor's said it affirmed National Bedding Co. LLC's proposed $475 million first-lien secured credit facility at BB- with a recovery rating of 1, the company's proposed $210 million second-lien senior secured facility at B with a recovery rating of 3 and parent company AOT Bedding Holdings Corp.'s corporate credit rating a B+.

The outlook remains negative.

The affirmation follows the announcement that the company will increase the first-lien facility by $25 million to $475 million. Pro forma for the increased add-on portion, the senior secured credit facilities will total $685 million.

Proceeds from these facilities, in conjunction with cash on hand, will be used to redeem a portion of the company's preferred stock outstanding and to refinance all existing debt.

The agency said the ratings on National Bedding balance its narrow business focus, aggressive financial policy and highly leveraged financial profile its well-recognized brands, solid market position and the mattress industry's relatively stable demand and significant barriers to entry.

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